The New ADU Rules in Bend: What Homeowners Need to Know in 2025

Accessory Dwelling Units (ADUs) have become one of the most popular ways for Bend homeowners to add space, flexibility, and value to their properties. Whether you’re thinking about housing a family member, generating passive income, or planning for multi-generational living, ADUs are at the center of Bend’s evolving housing strategy.

In 2025, the City of Bend updated its ADU legislation to make the process smoother, faster, and more affordable. These changes align with Oregon’s statewide housing goals and are designed to remove the red tape that has historically made building an ADU challenging.

What’s New in Bend’s 2025 ADU Rules

Bend’s city planners have worked to simplify the ADU approval process, focusing on flexibility and affordability. Some of the most significant updates include:

• No owner-occupancy requirement – Homeowners are no longer required to live on-site, making it easier for investors or families with multiple properties to add ADUs.

• Reduced minimum lot size – More properties across Bend now qualify for ADU construction.

• Flexible design standards – The city relaxed height, setback, and exterior finish restrictions to reduce costs and allow more creative designs.

• Streamlined permits – The approval process has been condensed, cutting down both paperwork and waiting time.

These changes mean that homeowners can move from idea to construction more quickly — whether they’re converting a garage, adding a backyard cottage, or building above a detached garage.

Why Bend Is Prioritizing ADUs

Bend’s population growth has consistently outpaced housing supply for years, driving up prices and creating challenges for both renters and buyers. By encouraging ADUs, Bend is aiming to:

• Increase housing diversity while keeping neighborhood character intact

• Promote affordable, energy-efficient housing

• Help homeowners generate passive income

• Provide more options for aging in place or multi-generational households

In addition to addressing housing shortages, ADUs contribute to sustainability goals. They typically have a smaller carbon footprint, use fewer materials, and require less land than traditional single-family homes.

What This Means for Bend Homeowners

If you own a home in Bend or Deschutes County, these new rules open up significant opportunities:

• You can add value to your property without needing to sell or relocate.

• You can create long-term rental income, helping offset today’s higher mortgage and insurance costs.

• You can future-proof your home, adding flexible space that can adapt to your family’s needs over time.

For many, this makes 2025 one of the best years yet to explore ADU construction — especially as building costs stabilize and lending options for ADUs expand.

Key Considerations Before Building

Before you break ground, be sure to:

• Check your zoning and setback requirements with the City of Bend’s Planning Division.

• Work with a designer or builder familiar with local ADU codes.

• Confirm whether your area has short-term rental restrictions, parking requirements, or utility hookup fees.

• Explore state and local incentives for energy-efficient or sustainable builds — these can offset costs significantly.

Looking Ahead: What’s Next for ADUs in Central Oregon

While Bend has led the charge, other Central Oregon communities — including Redmond, Sisters, and Deschutes County — are updating their own ADU ordinances. Expect continued changes that favor flexibility, especially as Oregon pushes for increased housing supply statewide.

If you’ve ever considered adding an ADU, now’s the time to revisit the idea. The process is more streamlined than ever, and the long-term benefits — both financial and practical — can be substantial.

FAQs

Q: Can I rent my ADU in Bend as a short-term rental?

Typically, ADUs in Bend are limited to long-term rentals, but some zones do allow short-term rentals with additional permits. Always confirm with the City of Bend’s Planning Department before listing.

Q: How much does it cost to build an ADU in Bend in 2025?

Depending on design, materials, and size, most ADUs cost between $175,000 and $300,000. Converting existing space (like a garage) can reduce costs considerably.

Q: Do I need to provide extra parking for my ADU?

In many areas, Bend has relaxed parking requirements, especially in neighborhoods near transit or walkable corridors.

Q: Can I build multiple ADUs on one property?

In most residential zones, only one ADU per lot is allowed — but upcoming legislation could change this for certain multi-family or high-density zones.

Q: What’s the difference between an ADU and a guest house?

An ADU is a self-contained dwelling unit with a kitchen, bathroom, and sleeping area — designed for full-time living. A guest house usually lacks a full kitchen and isn’t meant for permanent occupancy.